Danielle Groeneweg

Short Sale Tidbit #4

i) General Short Sale Difficulties

(a) If <1 lien holder, SS can be at least 4 times harder

(i) PMI counts as lien holder – must ok the SS (only servicer can get ok from PMI)

(b) If auction is within couple weeks, SS very difficult (maybe impossible)

(c) If debt is not house related, SS won’t help (refer client to atty) i.e – medical bills, recent divorce, lost job

1) Short Sale Alternative Info

i) Deed in Lieu (just give house back to bank)

(1) Only available if seller has just 1 lien on house

(a) Lender will step into position of seller, so does not want any other liens to now be held accountable for

(2) Results in no deficiency (same as non-judicial FC)

(a) Entire balance owed on FC lien is gone

(b) Junior liens not discharged if proceeds can’t pay (from re-sale of home)

(i) This debt is now unsecured and can be collected from seller
Please remember to read the first 3 Short Sale Tidbit blog entries for more information. As always, if you have any questions about short sales and need some expert advise, please contact Danielle anytime at 360.483.6490 or via email dgroeneweg@muljatgroupnorth.com!